Corporate Governance, Female Directors and Quality of Financial Information

23 Pages Posted: 8 Sep 2016

See all articles by María Consuelo Pucheta‐Martínez

María Consuelo Pucheta‐Martínez

Jaume I University - Department of Finance and Accounting

Inmaculada Bel‐Oms

Jaume I University - Department of Finance and Accounting

Gustau Olcina‐Sempere

Jaume I University - Department of Education

Date Written: October 2016

Abstract

The aim of this study is to examine whether gender diversity on audit committees (hereinafter, ACs) influences financial reporting quality by using panel data of Spanish listed firms. The financial reporting quality of firms is measured by the type of opinion received in the audit report. We estimate various panel data models of audit opinions and control for factors that are traditionally found to impact audit opinions. This study provides evidence to support the hypotheses that the percentage of females on ACs reduces the probability of qualifications due to errors, non‐compliance or the omission of information. Furthermore, the results also find that the percentage of female directors on ACs, the percentage of independent female directors on ACs and ACs chaired by females increase the likelihood of further transparency by disclosing audit reports with uncertainties and scope limitation qualifications.

Suggested Citation

Pucheta‐Martínez, María Consuelo and Bel‐Oms, Inmaculada and Olcina‐Sempere, Gustau, Corporate Governance, Female Directors and Quality of Financial Information (October 2016). Business Ethics: A European Review, Vol. 25, Issue 4, pp. 363-385, 2016, Available at SSRN: https://ssrn.com/abstract=2836230 or http://dx.doi.org/10.1111/beer.12123

María Consuelo Pucheta‐Martínez (Contact Author)

Jaume I University - Department of Finance and Accounting

Campus del Riu Sec
12081 Castello de la Plana
Spain

Inmaculada Bel‐Oms

Jaume I University - Department of Finance and Accounting

Campus del Riu Sec
12081 Castello de la Plana
Spain

Gustau Olcina‐Sempere

Jaume I University - Department of Education

Campus del Riu Sec S/n
Castellon, 12071
Spain

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